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🔥 Confused about what to do when appropriations are more than available profit? In this lecture, I’ve explained the entire concept of Appropriation Account Class 12 in the simplest way with clear logic and examples!

When Appropriations Are More Than Available Profit | Profit and Loss Appropriation Account Class 12

In this lecture, we have discussed what happens when appropriations are more than available profit in a partnership firm. This is an important topic from Class 12 Accounts Chapter 1 P and L Appropriation, a part of Accounting for Partnership Basic Concepts Class 12 from the T.S. Grewal book (2025–26 edition).

I have explained the concept in very easy language, so that every Class 12 student can clearly understand what to do when appropriations are more than available profit class 12 and how to show the same in the Profit and Loss Appropriation Account Class 12.

Sometimes, the appropriations are more than available profit — that means the total of partner’s salary, commission, and interest on capital is higher than the profit earned during the year. In such cases, we cannot give full amounts to partners as per the deed. Instead, the available profit is distributed in the ratio of total claims made by each partner.

This situation is also called appropriation more than profit, or appropriations higher than the profit, and is a very common concept in Appropriation Account Class 12. Students often get confused about how to prepare the P and L Appropriation Account Class 12 in such cases, but in this video, I have explained it with step-by-step logic and examples.

You’ll also learn how to find total appropriations of each partner, determine the ratio of their total claims, and distribute the limited profit accordingly in the Profit and Loss Appropriation Account.

Through simple illustrations we have solved practical questions that show clearly how appropriations are more than available profit impacts the distribution. These examples will help you understand both the concept and the calculation part of Class 12 Accounts Chapter 1 P and L Appropriation in a clear way.

By the end of this lecture, you will easily be able to:

Identify cases when appropriations are more than available profit

Prepare Profit and Loss Appropriation Account Class 12 correctly

Handle questions where appropriations higher than the profit occur

Understand every step of Accounting for Partnership Basic Concepts Class 12 in a simple and logical manner

This lecture is part of the complete Appropriation Account Class 12 series from Accounting for Partnership Firms – Fundamentals based on the latest T.S. Grewal Book 2025–26 and CBSE syllabus.

📌 Watch this lecture till the end to strengthen your understanding of P and L Appropriation Account Class 12 and master how to handle cases where appropriation more than profit situations arise in partnership accounting.

🎯 Perfect for:

Class 12 Commerce Students (CBSE, ISC & State Boards)

Students preparing from T.S. Grewal 2025–26 Edition

Anyone revising Accounting for Partnership Basic Concepts Class 12


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